BuzzFeed and the Difficulties of Branded Ad Content

The digital native news site BuzzFeed is in trouble, as illustrated by a trending topic on Twitter.

The Financial Times reported an alarming statistic as revealed by the company.

Buzzfeed, until now the genre’s gold standard, had halved its 2016 revenue projections from $500m to $250m, after making $150m in 2015, 30% lower than expected.

Multiple articles found linked in the tweets above talk about the difficulties in terms of generating revenue from advertising.

Marketing Dive states:

BuzzFeed takes a different approach than most publishers with its distributed content strategy, such as the content specifically created for Facebook and Snapchat. Where most publishers earn revenue from website ads, 75% of BuzzFeed’s content never appears on its website.

 

Twitter users seem to be reflecting a common opinion associated with the debacle – branded ad content is too labor intensive for a large and growing company.

The situation may be a reflection of a changing economy. Surely this will have implications for future digital startups in their aim to generate a reliable source of web revenue.

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